Japan’s Third Arrow Not So Sharp
Shinzo Abe promised to get the Japanese economy growing again with a ‘three arrow’ plan. The first two arrows were pure Keynesianism: unlimited monetary easing, and a huge borrowing spending plan. The third arrow was to be deregulation. But so far, there’s been almost nothing, and aside from switching metaphors from ‘arrow’ to ‘drill-bit’, little specifics were offered in yesterday’s speech to the global ruling class in Davos.
Here’s the Wall Street Journal, also known at chief cheerleaders for Abe’s sales tax hike.
“Delivering an address at the World Economic Forum, Japanese Prime Minister Shinzo Abe said he would act like a “drill bit” to cut through red tape and break down obstacles to growth in Japan. He cited broad areas from health care, trade, pension investments, tax policy and female labor-force participation to immigration.
“Over the next two years, no vested interests will remain immune from my drill,” Mr. Abe said in his speech, “A New Vision From a New Japan.”
But while the prime minister touched on an array of planned overhauls, he didn’t introduce any new policy. Nor did he discuss substantive details or new numerical goals for existing plans that investors and economists have been waiting to see as signs of his commitment to strategies for growth.”